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Financial Planning For Youth

When you are young and earning reasonably more, spending becomes an inescapable habit. There is no brake that can stop your consumerism from growing bigger when you have a credit card! Well, ‘financial discipline’ is the first condition for happy living and enjoying a tension-free, stress-free life. I thought I must show the ideal way with a few handy tips.

Salary Split: Prepare a list of fixed monthly income and expenses. Keep that amount aside – reserved. On getting the salary, one must spare money for the compulsory instalments cycles like SIP (Systemic Investment Plan), PPF, etc. and also for the other recurring expenses like utility bill payments, domestic help salary, etc. Most importantly, put aside a certain percentage of your salary for the ‘unplanned’ expenses.

Instalments: Avoid buying optional home needs like air-conditioner, television, washing machine, microwave, fridge, etc. on instalments. Try to save first and buy one by one. You will be more pleased and stress-free.

Vacation Budget: Prepare a budget for a yearly, long vacation in the country/abroad. Save this amount for one year before making the travel bookings.

Say “No” to buying to flaunt (Show off!): Do not purchase a car, a costly mobile, a costly camera or such significantly expensive items just for the show. Buy what you ‘need’ and not what you ‘want’. Do not succumb to the social pressure.

Dual Income Couples: When both of the couples are earning, both should share expenses and both should save or your money will be lost to the control of others.

Retirement Plan: Do not plan to work beyond fifty (even forty-five). So to say this, you will need investments that earn. Do see that.

Home Loan: Only 15% (or 20% maximum) of your monthly (“take home”) salary should be shared for Home loan EMI – or you will end up compromising with the other pleasures and expenses of your life.

Bonus & Arrears: Unlike the unplanned expenses, this is the unexpected surprise income. Invest it immediately instead of spending it away!

Credit Cards: If you already have one most people do these days, use this Credit Card as an emergency help instead of regular means for spending. Keep away from this fashion and addiction of “swipe my card!”. Use Debit Card wherever required, and ideally withdraw by ATM and spend that limited cash you can.

If you have, by any choice, read this complete article, I am sure you have shortlisted your thoughts. You should now consider taking up at least one or two steps to plan your money. I know you follow many of these ideas already.

After Parsis, Anavils (Anavil Brahmins, અનાવિલ બ્રાહ્મણ ) are the fastest decreasing community. The total population of Anavils around the world does not exceed two lakhs figure and that is also fast reducing day by day. Days are not far, beyond a century or so, when they will have to be seen/found in records, photos and videos. Why?

Because,
- they get married too late,
- many are dying unmarried,
- they wait for the career to be settled before the first (and maybe the only) childbirth.

One of the recent off-bit topics I’ve read, this one book about ‘Mumbai Mafia’ has been the most interesting, well-researched and well-written. Here is an excerpt from Dawood Ibrahim's journey from “Dongri to Dubai”, and the six decades of Mumbai mafia.